Peter Smith
⬤ AMD stock has been trading sideways for a while now, but it's doing something important—building a solid base above $222. The weekly chart shows the stock consolidating right above the 1.272 Fibonacci level near that price point, while bumping into early resistance around $259. That resistance lines up perfectly with current price action, suggesting AMD is preparing for its next move.
⬤ The semiconductor sector is dealing with some headwinds, particularly around proposed tax changes that have industry groups worried. Critics warn these measures could squeeze smaller chip companies hard—potentially pushing some toward bankruptcy and driving talent overseas. Despite this shaky policy backdrop, AMD's ability to hold its support zone shows strength that stands out among its peers.
⬤ Technically speaking, AMD is respecting its support and forming a tight consolidation just below multi-month resistance. Traders often see this kind of behavior as early accumulation—a sign that bigger players might be quietly positioning before a breakout. As long as AMD stays above $222, the bullish setup stays alive, and a push toward the next Fibonacci extension near $259.66 becomes more realistic.
⬤ The rangebound action isn't a red flag—it's actually constructive. AMD is digesting gains and setting up for what could be the next leg higher. With the AI expansion cycle still in full swing, investor interest in AMD remains elevated. Even with tax policy uncertainty hanging over the industry, the technical foundation and market structure suggest confidence in AMD's long-term outlook is holding strong.
Peter Smith
